Wednesday, 22 June 2011

Mismanagement, corruption and impunity have combined to threaten the once thriving Uganda Wildlife Authority, this blogger can now inform you.A lot has been in the press about the ongoings in the wildlife watch dog but the latest make you worry.First, the ongoing Commission of inquiry's mandate has ended but Justice George Kanyeihamba is still working without an extension of his mamdate, which started in February and was to last three months. Why there is no extension and the good old man is working, remains a mistery. Anyway, the Commission was instituted by Gen. Kahinda Otafiire to specifically find fault in the former UWA board chairman and Presidential advisor John Nagenda, his successor, counsel Andrew Kasirye. The inquiry also wants to find by all means that Moses Mapesa, the ED who was forced out of UWA by Otafiire and his bag boy called Dr Boysier Muballe. Mapesa and the previous board bosses declined to release UWA money taps to Otafiire and his cohorts. Nagenda's trouble was to write against the near banditry style of management that Otafiire ushered at the once vibrant wildlife conservation agency.They then, in a kangoroo style, handpicked Dr Andrew Seguya from Uganda Wildlife Education Center to become UWA's acting Executive Director [ED].Mr Seguya has fitted the bill so well that intrique, cliquism and financial hemorrhage now defines UWA's style of work.Your investigative blogger, has, for instance, established that Mr Seguya is in liason with some technocrats at the Tourism ministry to raid UWA's coffers for filmsy reasons. Instead of building UWA's financial base, Seguya is busy dolling out financial favours to the Tourism bureacrats.While the bureacrats get engrossed in the financial inducements, Seguya then concetrates on creating a clique in UWA. The bosses who would then intervene, are made impotent by the financial benefits. For instance, Seguya endorsed the reduction of gorilla tracking permits just because some interested tour companies had seen him. DR Congo and Rwanda still maintain the old price but because Seguya wanted to be relevant to the powers that be both financial and politically, he maded a decision that is bound to lead to revenue loss for UWA.These days in UWA, if a big man from Tourism ministry asks for money, the incompetent UWA financial director Yusuf Musisi just runs to cash office.

The staff who stand in the way, are branded rebels thus kicked out of UWA. That is how the four senior staff ended up being suspended by the Kanyeihamba Commission even before hearing from them. Apparently, some members of this Commission are enjoying sweet grapes from UWA.Leaving Seguya to run the show as he wishes, has made staff in UWA who hitherto never bought into tribalism talk, to start feeling the new man wants to introduce tribalism. This view now silently held by several UWA staff, has gained credence after Seguya appointed mainly Baganda to juicy positions yet among the staff [ Juliet Anguria Nsiima, John Makombo. Vanice Mirembe and Grace Kyomuhendo] none is a Muganda.

Seguya's manipulation

While he tries to distance himself from the suspensions, Mr Seguya was actually behind it. Sources say that the reason Kanyeihamba Commission sent the staff on suspension was to give room to Seguya to survive the court battle. Seguya whose appointment was challenged by Mark Kamanzi, the legal affairs director at UWA, was in panic that court was going to kick him out.He then reportedly connived with some Commission members to send John Makombo on suspension so as to create a kind of leadership crisis at UWA. Seguya would then use Makombo's suspension as reason to plead that if he is sent away, UWA would have a management crisis since one of the longest serving officials [Makombo] was on suspension.

Proof of Illegal appointment

Seguya appears to be badly in need of opportunity to scheme out financial deals in UWA to the extent that even when everyone sees that he is not serving legally, the new boss doesnt give it a thought.On December 23 last year, the First Deputy Prime Minister, Eriya Kategaya wrote to the President asking him to compel Otafiire to appoint a new board at UWA which would then appoint a new ED. Kategaya's letter was provoked by a top management meeting which had concluded that Seguya was working at UWA illegally.Ministers Fred Ruhindi, Nelson Gagawala, Simon Lokodo and bureacrats like Justus Tindigarukayo, Denis Bireije, Henry Obbo and Patricia Mutesi attended the meeting. Gen. Otafiire sent an apology.The meeting concluded that "The Appointment of Board Trustees headed by Dr Muballe Boysier under Minute 98 [CT 2010] was not done in accordance with the Uganda Wildlife Act...." The appointment of the acting executive director of UWA by the Minister was irregularly done as there was no Board of Trustees in place," reads Kategaya's letter.

But Gen. Otafiire remained defiant. So did Seguya. Although he had a job at UWEC, the perks at UWA appear to have tickled the soft spoken man. He now reportedly tries to use favours to silence criticism--from the government officials to media houses. He is known as a man of underhand methods who can smile with you and look innocent when behind the curtains he sharpens a dagger to hit at you. He has reportedly perfected intrique and corporate politics yet he is short on honesty.

Money goes like water

In February, UWA paid out Shs 7.075million to GEn. Kahinda Otafiire reportedly for a trip to Rukungiri to visit areas ravaged by wild animals. The Under secretary at Tourism Emmanuel Olaunah asked for the money.UWA through Seguya's ordered the payment. However, the money was to be banked in ministry account NO.100160-005 according to the payment voucher, a copy of which your blogger obtained. Later, the money was paid to Olaunah who signed for it on February 15. Sources say Gen. Otafiire visited Rukungiri for only one day and the Shs7million was blown like that.Then in April, one Edna Nandudu, wrote to Seguya to again facilitate Otafiire's visit to Mt. Elgon National Park to talk to the surrounding communities. The visit was to last 10 days. UWA paid out Shs 9.56million. The minister's visit again lasted one day!Seguya is unable to question these payments because he sees a bigger picture--he wants support of the ministry to continue bossing UWA.As this happens, Seguya is cracking hard on other staff he perceives a problem especially those who have worked longer at the agency.There is a near revolt in UWA because of Seguya's hypocritical management. Staff have been sending anonymous letters attacking Seguya and this has forced the man to block staff emails.These days, staff emails are screened and access to internet limited.Matters were worsened by an anonymous letter which said one top boss at UWA once stole a baby crocodile at UWEC. This boss reportedly connived with a whiteman who visited UWEC in a motorcycle. He went straight to the office and the two later visited the veterinary section. They carried something in a class box. The warder did not bother. It was untill the crocodile was intercepted by immigration officials at Entebbe airport that the matter became serious. Money later exhanged hands and the matter was abandoned at some stage. At least the croc survived. Sources say that most of the theft of wild animal species was linked to some senior conservationists.That is Uganda's wild life story for now.

Wednesday, 8 June 2011

Sacked former VP Prof. Gilbert Balibaseka Bukenya is crying foul over his impending prosecution over abuse of office and causing financial loss to the government.
The MPs also joined him saying others should also be guillotined. Theodore Ssekikubo, the Lwemiyaga MP who never misses any opportunity to accuse Foreign Affairs minister Sam Kutesa plunged into the debate demanding that his nemesis should also be charged.
A senior official in the office of the President, has given your investigative blogger a copy of the original draft IGG chogm report that pinned several officials. But the final report which has been used to pin Bukenya is different. Apparently, Bukenya has been showed the original report.
Sources say it was later doctored by the Ombudsman himself. Others say, the IGG officials did not do a good job,therefore wanted to find Kutesa culpable by all means.
According to sources, the IGG Raphael Baku is mean with the truth in regard to the Chogm investigations. After the report was handed to him for signing, intelligence sources say the man deleted some culprits.
Its is alleged that Baku was compromised after about Shs200million transaction. Your blogger is still verifying this very important and disturbing allegations against the Ombudsman. Others sources say the man was simply panicking because of his job. He is still in acting capacity and he wants to please the powers that be so that he gets confirmed as the Ombudsman inspite of his alleged poor management of the inspectorate.

Well, below is the 30 page draft report. Nice reading.

Draft

REPORT ON INVESTIGATIONS INTO THE PROCUREMENT OF 80 BMW 1200RT MOTORCYCLES FOR CHOGM 2007- BY MINISTRY OF WORKS AND TRANSPORT TS.122.2010.

1.0BACKGROUND

Arising out of the Parliamentary Public Accounts Committee (PAC) probe intoCHOGM 2007 expenditure, the Inspectorate of Government instituted ||
investigations into allegations concerning irregularities in the procurement of 80 J|BMW 1200RT Outrider motorcycles. It was particularly alleged that the bidding H
process for the Motorcycles was fraught with procurement irregularities and •;:financial loss was occasioned to the Government of Uganda.

2.0LEGAL BASIS OF THE INVESTIGATION

The Inspectorate of Government commenced investigations into the above allegations on the basis of the provisions of Article 225 (1) (a), (b) (c) and (e), 226, 227 and 230 of the 1995 Constitution of the Republic of Uganda (as amended) and Sections 8 (1) (a), (b) (c) and (e), 9, (o), 10 and 14 (5) and (6) of the Inspectorate of Government Act (2002).

3.0LAW APPLICABLE

i)The 1995 Constitution of Uganda(as amended)

ii)The Inspectorate of Government Act 2002

iii)The Anti Corruption Act 2009

iv)The Leadership Code Act 2002

v)The Penal Code Act

vi)The PPDA Act 2003

vii)The PPDA Regulations 2003

viii)The Public Service (Commission) Regulations SI 288-1

ix)The Uganda Government Standing Orders.

4.0OBJECTIVES OF THE INVESTIGATION

4.1 To establish whether the 80 BMW 1200RT Outrider Motor cycles were irregularly procured without due regard to the public procurement procedures and regulations.

4.2 To establish whether there was loss of government funds and if so, to identify the people responsible so as to take appropriate actions.

5.0SCOPE

5.1The investigation was limited to the issues raised in the objectives above.

iv)Irrevocable letter of credit by Ministry of Works and Transport in favour of Motorcare Uganda Ltd

v)Memorandum and Articles of Association of M/S Motorcare Uganda Ltd

vi)Airway bills

vii)Customs Declaration records

viii)Cargo release orders

ix)Bills of entry

x)Delivery notes and certificates of acceptance

xi)Invoice from Motorcare Uganda Ltd to Ministry of Works and Transport

xii)All payment schedules against letter of credit from Bank of Uganda

xiii)Inspection report

xiv)Log Books

7.0FINDINGS

7.1BACKGROUND

7.1.1The Commonwealth Heads of Government Meeting, abbreviated to CHOGM, is a biennial summit meeting of the heads of Government from all Common Wealth nations. Every two years the meeting is held in a different member state, and is chaired by that nation's respective Prime Minister or President who becomes the Common Wealth Chairperson in office. Recently, meetings have been attended by Queen Elizabeth II who is the Head of the Common Wealth although the Queen's formal appearance only began in 1997.

7.1.2 The first CHOGM was held in 1971, and there have been twenty-one held in total. The most recent in Trinidad and Tobbago in 2009.

7.1.3In December 2003, a notification was made in Abuja for Malta to host CHOGM in 2005 and Uganda to host in 2007. Accordingly therefore, the Government of Uganda hosted CHOGM from 23rd to 25th in November 2007.

7.1.4Uganda as the host country was mandated to put in place facilities that met with the requirements of the Commonwealth Secretariat which were in accordance with the specifications contained in the guidelines (The Blue Book) and budget for the organization of CHOGM.

7.1.5The Government of Uganda through the Cabinet went ahead and approved the organizational framework for Uganda's hosting of CHOGM which included the formation of a Cabinet Sub Committee and the National Task force. The responsibilities of these two organs were to provide the political framework for supervising and coordinating the implementation of all planned activities.

7.1.6In a meeting held on 6th, September, 2004, the Cabinet Sub- Committee began its CHOGM preparations and agreed on a number of issues including financing of the work of the National Task Force, and approving competent officers to work on the Task Force among other issues.

7.1.7Investigations established that the Cabinet Sub Committee meetings were in most cases chaired by H.E the Vice President Prof Gilbert Bukenya except when the President H.E Yoweri Museveni attended in person. In the absence of the President and the Vice President, a Cabinet Minister would chair the meetings.

8.0TRANSPORT FOR CHOGM 2007

8.1.1In the Cabinet Sub Committee meeting held on 15th, February 2005 under Minute 3/2005 the meeting was informed that the Government would be expected to provide appropriate transport for Heads of State, Commonwealth Secretariat staff, delegates and special guests who would include Heads of Regional and International organizations (Appendix 1)

8.1.2 The CHOGM guide lines required that the host country prepare a detailed operational plan for transport requirements which would primarily take care of the movement of delegations throughout the duration of the conference. Page 42of the Blue Book paragraph 4 on "transport for Heads of delegation" thus provided that; " The primary focus should be on the movement of Heads of Government from their arrival in the host country to their departure" (Appendix 2)

8.1.3 The Blue book also required that the host country procure a variety of vehicles to include specially armored vehicles for leaders, luxury cars and security escorts among others.

8.1.4 The Transport Sub Committee under the Ministry of Works and Transport (MWT) was mandated to procure vehicles for the CHOGM event. The vehicles were to include executive cars, police motorcycles, lead cars, ambulances, command vehicles and patrol vehicles. The Transport Sub Committee hence drew up plans and also made an assessment of the vehicles that would be required to facilitate both the Heads of Government and the delegates. Among other transport facilities it was decided that the Government of Uganda would require 80 Police Motorcycles.

9.0 THE PROCUREMENT PROCESS FOR THE 80 BMW MOTORCYCYLES

9.1.1 In their letter to the PS/MW&T, Ref. OPS 175/245/01/31 dated 28/03/2006 -

"Procurement of Police Out Rider Motorcycles and Leadcars for

•CHOGM",UgandaPoliceindicatedthattheypreferredBMWR1200RT

motorcycles and they proposed that selective procurement be used in order to

enable them acquire the desired models. (See Appendix3}

9.1.2 On 24th May 2006 the Transport Sub-committee in the MWT wrote to Uganda Police rejecting the proposed procurement by brand on the ground that it is not

permitted under the PPDA Act because it stifles competition. Uganda Police was asked to justify their choice of BMW.

9.1.3In his letter Ref. OPS 175/245/01 of 26th May 2006, the Inspector General of Police (IGP) outlined reasons for direct purchase of BMW 1200cc outrider motorcycles for use during CHOGM. He explained that the choice was based on the need to standardize their fleet because at that time the force already had 23 units of BMW motor cycles with competent riders who had also been trained in their maintenance. (See Appendix4)

9.1.4Despite the request by Police, Ministry of Works and Transport decided to advertise for provision of Transport and related services for the CHOGM 2007 in the New Vision of 5th and 8th June 2006, the Monitor of 31st May and 5th June 2006 and the East African Newspapers of 5th - 11 June 2006. (See Appendix 5)

9.1.5During the 11th Meeting of the Cabinet Sub Committee held on the 11th July 2006, it was decided that the tendering process be halted until the details of the type of vehicles and the mode of hiring are worked out/determined. The decision on motor vehicles included motorcycles. (See Appendix 6)

Consequently on 14th July 2006, the PS MW&T issued a notice in the newspapers halting the procurement process indefinitely in order to allow consultations with other stakeholders like the Transport Sub Committee and the Cabinet Sub Committee. (See Appendix?)

9.1.6Minutes of the 15th Cabinet Sub-Committee meeting held on 20th November 2006, indicated that Hon. Sam Kuteesa, Minister of Foreign Affairs informed the Committee that he had written to some companies and only Motor Care (U) Ltd (the eventual winner) had come up with the proposal willing to lease or sell vehicles and Motor cycles for the Police Outriders. Hon. Kuteesa did not disclose to the meeting the other companies that he had written toPargraph 2 of the record of the minutes provided as follows;

"Hon Sam Kuteesa informed the meeting that he had written to some

companies but that so far only one company, Motorcare, had come up

with the proposal to sell 30 of the BMW BOO series and lease 3O more

of the same capacity for the principals. He further explained that the

company was also willing to lease or sell 12O more of the BMW 300

series , 120 BMW motorcycles for the police outriders and 6O Nissan

Hard body single cabins for the police lead cars."

It-was recommended in the same meeting that the Minister of Foreign Affairs and the Minister of Works and Transport and the Sub-Committee on Transport work out the modalities (of (procuring the vehicles and Motorcycles from Motorcare (U) Ltd)(See Appendix8)

9.1.7 In a letter dated 25th, April 2007 the Inspector General of Government wrote to the Executive Director of the CHOGM Secretariat asking her_aroong other things

3tfw^t^-U/Khe-C^v-^KJI_2

to clarify onthe role of the Hon^Minister of Foreign Affairs in soliciting for proposals from service providers. (Appendix9)

9.1.8In her response she referred the IGG to the letter written by the Hon Minister of Foreign Affairs to the IGG dated 30th, April, 2007.

9.1.9In his letter dated 30th, April 2007 and in response to the IGG'S letter the Hon Minister of Foreign Affairs denied writing to the service providers. He stated as follows; (Appendix 10)

"I wish to inform you that I did not write to companies inviting them to express their interests in supplying vehicles and opening proposals you state in your letter, that was the work of the Ministry of Works and Transport"

9.1.10The Ag. Inspector General of Government on 13th April 2011 wrote to Hon Sam Kuteesa asking him to avail copies of the letters he wrote to companies asking for their willingness to sell or lease to government vehicles for CHOGM 2007 and to explain why the letters were written by him and not the appropriate body in the Ministry of Works and Transport that is mandated to handle procurement matters. (See Appendix 11.)

9.1.11 In his reply to the Inspectorate in a letter dated 21st, April, 2011, Hon. Sam Kuteesa stated that he had failed to locate the letters. He further stated as follows "with regards to why I wrote the letter (\.o the companies), it was not because I wanted to take over the procurement role but because all along we had been working on the premises that there would be outright purchase of vehicles. When a policy decision was made that we should lease rather than buy vehicles I simply communicated a change of policy to those companies to find out if they were willing to operate under a changed policy, Of course the procurement would as it was be undertaken by the Ministry of Works and transport" (Appendix f 12)

NB: It can be noted at this point that the Hon. Minister of Foreign Affairs made two statements that were contradictory and inconsistent. He initially denied writing to the companies then changed his statement and accepted that he had written even though he could not locate the letters.

9.1.12 In his statement to the Inspectorate of Government, the Permanent Secretary in the Ministry of Works and Transport who was Accounting officer at the time of CHOGM preparations stated as follows;

"On 20th November 2006, Hon Sam Kuteesa handed to me documents in an envelope. This was a quotation from Motorcars for . leasing/outright selling of BMW vehicles to Government. This quotation included supply of BMW Motorcycles and Nissan Pickups and lead vehicles" (Appendix 13)

9.1.13Following the 15th Cabinet Sub Committee meeting, the Minister of Foreign Affairs, Hon. Sam Kuteesa on 24th November 2006 wrote to Hon. John Nasasira MW&T and indicated to him that BMW had confirmed willingness to lease vehicles to government under specifically agreed terms as specified in their offer which he had handed to the Permanent Secretary MW&T. (See Appendix 14)

9.1.14 In his letter dated 24th, November 2006 the Minister stated as follows; "Kindly refer to Minute 7 of the Of Cabinet Sub Committee on CHOGM in which it was decided that the Minister of Foreign Affairs and Works and Transport meet to work out the modalities for leasing the vehicles for CHOGM O7.....................as indicated on 20th November 2006, to the

Cabinet Sub Committee, BMW has now confirmed willingness to lease vehicles to government under specifically agreed terms as specified in the offer which I handed to the Permanent Secretary, Ministry of . Works and Transport........"(See Appendix 15).

9»1.15The Permanent Secretary MWT Mr. Charles Muganzi, routed Hon. Kuteesa's letter to Eng Okurut the Chief Mechanical Engineer to handle. On 1st December 2006, Eng. Okurut in turn wrote to the Secretary Contracts Committee and informed them that M/S Motorcare Uganda Limited, the local representatives of the BMW Manufacturer of the motorcycles, had been consulted and they had agreed to submit an official quotation.

9.1.16 Eng. Okurut further stated that the Contracts Committee should seek special dispensation from PPDA for direct procurement. In the same letter the Engineer

sought for approval of the bid document, shortlist and membership of the Evaluation team for the procurement of Motorcycles.

9.1.17 It must be noted that a market survey had been done by Eng Julius Tinkamanyire of Chief Mechanical Engineer's Department to determine the indicative cost of the motorcycles. Subsequently PP Form 20 was filled and endorsed by the Chief Mechanical Engineer, Director of Transport and Permanent Secretary, MW&T indicating that 80 BMW R1200RT motorcycles would cost Shs.4b/= , i.e. Shs.50m/= or Euros 21,645 per unit. (SeeAppendix 16)

9.1.18During the 16th Meeting of the Cabinet Sub Committee held on 4th December 2006, the Chairman, H.E. the Vice President Prof. Gilbert Bukenya stated that "The decision on Transport that was taken during the 15th Cabinet Sub Committee on CHOGM was final...All other companies that were coming up with proposals should not be considered. "(See Appendix 17)

9.1.19 Following this directive, the Permanent Secretary MW&T on 18th December 2006, wrote to the Executive Director PPDA requesting for a waiver of open • direct tendering to allow direct procurement. (See Appendix 18)

9.1.20 In a consultative meeting of 12th February 2007 on CHOGM procurements chaired by H. E the President of the Republic of Uganda and attended by the Executive Director PPDA, the President wondered why PPDA was not granting waivers for purchase from single (reliable) source (Supplier).

9.1.21 In response, the Executive Director of PPDA Mr. Edgar Agaba explained that: "PPDA allowed direct procurement (sourcing from one company), but that the users were required to provide sufficient information to justify the direct method. PPDA called for transparency in the processes i.e. that the cost of projects and unit cost to be disclosed by Ministries so as to eliminate possibilities of inflating prices, giving examples of BMW motorcycles required by the Police Force, whose prices were not indicated in the request for the direct procurement"

9.1.22 H.E. the President emphasized adherence to transparency in all procurement

' processes, emphasizing that for direct procurement/single sourcing for items

which were time bound, detailed -information should always be provided to

enable PPDA make urgent but well informed decisions. He further directed the

Executive Director of PPDA to avail him copies of the documents which weresubmitted relating to procurement of motorcycles by the Police Force. (See Appendix 19)

9.1.23 On 21st February 2007, the Executive Director PPDA Mr. Edgar proposed a list of three known companies dealing in automobiles which included those specifically for BMW, and advised use of Restricted Tendering in order to achieve value for money. (See Appendix 2O)

9.1.25 On 7th March 2007, the Contracts Committee of MW&T under Minute. 130/03/07 observed as follows :

i)That PPDA, after meeting officers from MW&T and Police, cleared the Ministry vide their letter PPDA/M20/00 dated 21st February 2007 to use restricted bidding using renowned dealers of fleet brand,

ii)That the MW&T/Police selected three firms out of the list provided by the PPDA that these were the representatives of manufacturers of the preferred BMW R1200RT Police Outrider Motorcycles,

Hi)That dully endorsed PP Form 20 was submitted to confirm availability of funds,

iv)That evidence that the three firms are local representatives of the manufacturers and offer after sales services was submitted.

9.1.26 On the 7th of March 2007 , the Contracts Committee approved the tender document under the restricted international bidding method and short listed the following companies namely; M/S Motorcare (U) Ltd, M/S Mashariki Motors Ltd (Kenya) and M/S South Africa Dayang Motor Corporation. (See Appendix21)

9.1.27 Investigations established that Motor care (U) Ltd was short listed even when it did not have a dealership agreement or letter of authorization from BMW. The letter of authorization from BMW Germany to Motorcare (U) Ltd is dated 21 March 2007. This letter was presented long after the short list had been made. (See Appendix 22)

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9.1.28 The assertion by the Contracts Committee that they had got evidence that the three firms were local representatives of manufactures was incorrect because at . that time Motorcare Uganda Limited had not got authorization from BMW.

10.0ISSUING OF SOLICITATION DOCUMENTS

10.1.1 The solicitation document was issued to the bidders on 12/03/2007 using PP Form 31 for 80, 2007, BMW R 1200RT Police Outrider Motorcycles of German origin. (See Technical requirements as detailed in the Bid Document pages 35 and 36)

10.1.2 A copy of PP Form 31 obtained from Head of Procurement and Disposal Unit, MW&T indicated that M/S Motorcare Uganda Ltd received the tender document on 15th March 2007, M/S Mashariki Motors signed for the solicitation document on 21st March 2007 and Dyang Corporation On 20th March 2007. (See Appendix 23)

10.1.3 Investigations have established that on the record of receipt of bids on PP Form ' 34, only Motor Care (U) Ltd returned and submitted its bid on 30th March 2007. (See Appendix 24)

11.0OPENING OF BIDS

ll.l.lThe bids were opened on 30/03/2007 at 11:00 a.m. in the Ministry of Works Contacts Committee Board Room. The bid opening Form PP 35 shows that only one bidder; M/S Motorcare Uganda Ltd returned the bid which was opened and read out at a cost price of Euro 2,288,240 for 80 motorcycles. (See Appendix 25)

11.1.2The investigation team however obtained a letter dated 29/03/2007 allegedly submitted by M/S Mashariki Motors Ltd of Kenya withdrawing their bid due to "unavoidable circumstances". The letter was addressed to the Mechanical Engineer, Old Port Bell Road but it was endorsed with Bid Opening stamp of PDU, MW&T dated 30/03/2007. (See Appendix26)

11.1.3 The investigation team interviewed Ms Dorothy Birabwa the then Head, PDU . and her former staff on the issue of the withdrawn bid by Masahariki Motors. They howeverall denied recieveing the Mashariki bid and stated that only one bid from Motorcare Uganda Ltd was received as indicated on PP Form 34.

11.1.4 Mr. Tabaluka then Procurement Officer claimed there was even no representative of Mashariki Motors Limited present at the opening of the bid. He further statedthat the letter could have been brought in by trickery to deceive that a bid had been withdrawn in order to leave Motorcare Uganda Ltd a sole bidder.

11.1.5 During investigauens, the inspectorate ofQovernment requested the Kenya Anti Corruption Commission (KACC) to trace Mr. Harrison the General Manager of Mashariki Motors Ltd to explain under what circumstances the company had withdrawn its bid at the last minute yet the company was a well known authorized dealer of BMW Motorcycles. (SeeAppendix27}

11.1.6 In their response, the KACC furnished the Inspectorate with the statements of Mr. Harrison and Mr. Gecaga. Mr. Harrison alleged that he was only the service manager at Mashariki Motors . He worked with Mashariki up to October 2008 when the BMW dealership was moved from Mashariki to Bavaria motors.He denied involvement in the tender (to supply BMW Motorcycles for CHOGM 2007) pointing all responsibility to Mr. Gecaga.

11.1.7 In his statement he observed that "sometime in 2007, the Managing Director of Masahriki Motors Mr. Gecaga informed us to prepare the pricing of BMW Motorcycles from Germany. ...I recall we signed pricing documents which I suppose were sent to BMW Germany and to Uganda. As at this I did not know who was requisitioning for the bikes... I recall that after the documents were sent to Germany, after a couple of weeks, Germany asked us to withdraw the tender. On instructions of Mr. Gecaga , I wrote to withdraw letter to Uganda which went under my signature. Mr. Gecaga never explained why Germany asked us to withdraw the tender." (Appendix 28)

ll.l.8In Mr. Gecaga's statement which was provided to the Investigation team by KACC he denied involvement in the tender to supply BMW Motorcycles and the issue of the withdrawn bid. He however stated that in the year 2005 the shareholders of Mashariki entered into a joint venture agreement to sell the business of BMW dealership to a Danish investment group called Kjaer Group. This was with BMW approval and was to be for a period of three years.

11.1.9 He further observed that " when the inquiry of the procurement of the BMW Motorcycles by the Ugandan Government came it must have

13

come to Maganga who would have to deal with Harrison, being the technical person and finally BMW Group. Personally I would not be involved in this, I never wrote any letters, I never dealt with the Ugandan Government or BMW Group over this matter. Also I don't know why the tender never went through(withdrawn) but the instructions for withdrawal must have come from BMW"(Appendix 29)

11.1.10Investigations confirmed that Mashariki Motors had a formal dealership with BMW Germany spelling out terms and conditions of the dealership. On the other hand Motorcare (U) Ltd availed to the PDU a plain letter referenced as "Manufacturer'sAuthorization Letter" from BMW Germany.

11.1.11The investigation team obtained and analyzed the Annual Accounts for Motorcare Uganda Ltd for the Year Ended 31 December 2007. "The Company's Affairs" show that "Motorcare Uganda Limited holds the distribution rights for NISSAN vehicles and SUZUKI motorcycles....."there is no

mention of BMW and yet this was the time when Motorcare Uganda Limited had just supplied BMW products to the Government of Uganda.

12.0EVALUATION OF BIDS

12.1.1 Investigations established that Evaluation Committee Members comprised the following persons:

1.KennethMugambe,Commissioner/Budget&Policy Dept - MOPPED; Chairman

2.Dr. Isaac Ezati, Deputy Director - Mulago Hospital; Vice Chairman

3.Juma Walusimbi, Director Communications - Bank of Uganda; member

4.Eng. George William Okurut, Chief Mechanical Engineer - MW&T; member

12.1.20f the three firms invited to bid, only M/s Motorcare Uganda Ltd responded and the bid was subjected to the three stages of evaluation. Investigations established that although bids were sent to Motorcare, the bid returned had a joint venture with Europcar.

12.1.3 During preliminary examination Motorcare (U) Ltd submitted a trading license no. 0066761 which had expired on the 31st December 2006. It did not submit an Original Dealership Agreement and merely provided a letter of guarantee of supplies of BMW motor cycles which the evaluation committee construed as compliant with the requirement and recommended Motor care (U) Ltd for further evaluation.

12.1.4 It has been established that the Entity wrote to both PPDA and the solicitor General requesting for guidance on the issue of the trading licence.

12.1.5 In a letter dated 19th, April 2007 the Solicitor Genral replied stating that the issue of the trading license was non material and the entity should ask Motorcare (U) Ltd to furnish a proper trading license. (Appendix30)

12.1.6Investigations have established that in a letter dated 20th April 2007 the Evaluation Committee requested Motor care (U) Ltd to submit a valid trading license. (Appendix31)

12.1.7 In a letter dated 25th, April 2007 the Executive Director of the PPDA wrote to the Permanent Secretary MWT and stated among other things "that in the present situation unless the facts are shown to be otherwise, failure by a bidder to submit a valid trading license would amount to a a material deviation which cannot be corrected by the Evaluation Committee and thus such a bidder should not be subjected to further evaluation" (Appendix 32)

NB/ It is important to note that at this stage the PDU ignored the advise of the PPDA Authority and went ahead with the advise of the Solicitor General.

12.1.8 The Inspectorate of Government wrote to Motorcare on the 21st of April 2011 and requested them to furnish among other things an original dealership agreement with BMW. (Appendix33)

12.1.9In a response dated May 3rd, 2011 Motorcare asserted that they got the dealership with BMW IN 2006. (Appendix 34),

12.1.10AperusalofthedocumentMotorcarefurnished as a dealership agreement between them and BMW shows that the document is not signed and the dealer contract is between Motorcare (U) Ltd and AES Ltd of the United Kingdom. (Appendix35)

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12.1.11 Under Commercial Evaluation the Bidder was required to submit a Power of Attorney, Bid Security and a Delivery Schedule. The bidder complied with the requirements except that the Power of Attorney lacked the signature of the donor. This was resolved after the bidder submitted a duly signed Power of Attorney upon request by the Evaluation Committee and was recommended for 'Technical Evaluation.

12.1.12Under the Technical evaluation the submission by the bidder complied
with the technical specifications for BMW R 1200 RT Motorcycle as per thesolicitation document.

12.3Financial Comparison to rank the bids

Investigations established that since there was only one bid, there was no financial comparison done. The Evaluation Committee noted that the bidder had quoted a unit price of DDU Euros 28,603 (Delivery Duty Unpaid) which was far higher than DDU Euros 21,645 estimated in PP Form 20. (See Appendix36)

The Evaluation Committee recommended that the tender for supply of 80 BMW R 1200 RT motorcycles be awarded to M/s Motorcare Uganda Ltd and that a waiver be sought from PPDA to have negotiations with the bidder to have the unit price reduced from the offered Euros 28,603 which was inconsistent with the ' estimate of DDU Euros 21,645 as indicated in PP Form 20.

13.0CONTRACTS COMMITTEE DECISION

13.1.1 During the 289th meeting held on 26th April 2007, the Contracts Committee granted permission for negotiations with M/s Motorcare Uganda Ltd for a possible reduction of the unit price from Euros 28,606 to Euros 21,645 in accordance with Reg. 219 (4) and Reg. 166 (4) of the PPDA Regulations, 2003.

13.1.2 Records indicate that Negotiations took place on the 8th and 9th of May 2007 under the Chairmanship of Amb. Mugoya. They were immediately followed by a PPDA waiver for negotiations on the price.

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NB:/f must be noted that the waiver from PPDA came long after the negotiations had been concluded

13.1.3 During the negotiations, M/s Motorcare Uganda Ltd was only willing to reduce the unit price by Euros 700, thus reducing the price from Euros 28,603 to Euros 27,903, giving a quoted total sum of Euros 2,232,240 (Euros two million, two hundred thirty two thousand two hundred forty), which was still higher than the estimated cost as per PP Form 20.

14.0CONTRACT AGREEMENT

14.1.1 On 12/06/2007, the Government of Uganda represented by MW&T signed a contract agreement with M/s Motorcare Uganda Ltd for supply of 80 BMW R 1200 RT Police Outrider Motorcycles at a sum of Euros 2,232,240. (See Appendix 37)

15.0SPECIAL PROVISIONS UNDER THE CONTRACT AGREEMENT

15.1.1 Investigations established the contract agreement between the Government of Uganda and Motocare (U) Ltd provided for various inspections to be carried out as conditions to the agreement under Article 26 of the contract. Article 26.2 provided that "...all reasonable facilities and assistance, including access to drawings and production data, shall be furnished to the inspectors at no charge to the Procuring and Disposing Entity. "

15.1.2 Clause 26.3 provides that; *the Procuring and Disposing Entity or its designated representative shall be entitled to attend the tests and/or inspections, provided that the PDE bears all its own costs and expenses incurred in connection with such attendance......."

I5.1.3Clause 26.4 provides that; "Whenever the provider is ready to carry out such tests and inspections, it shall give a reasonable advance notice, including the place and time, to the Procuring and Disposing Entity…”

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16.0THE INSPECTION TRIP TO GERMANY

16.1.1 In fulfillment of the conditions of the contract mentioned above, an inspection visit was organized between 17th September 2007 and 21st September 2007 to Germany arranged by the Motorcare (U) Ltd in conjunction with BMW division for ' sales in Africa and Caribbean region. The purpose was to inspect and verify the production of the 144 BMW vehicles and 80 BMW 1200RT Outrider motorcycles for CHOGM 2007 in accordance with the agreement.

16.1.2Investigations established that the inspection team was comprised of Eng. George William Okurut, the Chief Mechanical Engineer MOWT, Mr. Albert Akovuku, Chief Transport Officer, State House and Mr. John Ndugutse, Assistant Superintendent of Police, UPF.

16.1.3 It has been established that the inspection team did not inspect any of the Motorcycles or vehicles that they had gone to see.

16.1.4The inspection visit report by the Chief Mechanical Engineer dated 5th October 2007 indicated that they did not inspect the production line of the BMW 1200RT Motorcycles because production had been completed and the units were enroute to Uganda via Vatry Airport in France; although there was no documentary evidence provided to the team. The units had been manufactured prior to the arrival of the delegation in Germany.

16.1. 5 Evidence on record shows that Mr. Moses Banturaki, the Sales Manager of Motor care was responsible for arranging the trip to Germany. The team traveled with an understanding that they would be able to inspect the motorcycles and vehicles according to the scheduled plan. (See Appendix 39).

16.1.6 Eng. Okurut the chief Mechanical Engineer of MW&T who led the team stated that they were not even availed the production data and transportation details (port and date of embarkation, mode and dates of departure and destination) as per conditions of the contract.

16.1.7 It is important to note at this point there was a breach of the terms of Article 26of the Contract Agreement by Motorcare Uganda Ltd who arranged the trip well aware that the vehicles and motorcycles had already been dispatched to Uganda. The expense of Shs. 14,607,000= which government incurred of the aborted tripwas a loss that was occasioned by the deliberate actions of Motorcare (U) Ltd.

17.1.2 On 19/06/2007, Bank of Uganda opened an Irrevocable Letter of Credit No. LC 2007/40 with DEUTSCHE BANK AG, FRANKFURT AM MAIN for Euros 2,232,240 as the intermediary bank through which payments would be effected to the supplier. The supplier's bank was then indicated as STANBIC BANK UGANDA 17

"hannihngton road, crested towers but this was later changed to

NORDEA BANK, COPENHAGEN, DENMARK. (SeeAppendix38)

17.1.3 Information obtained from the department of Settlements and Payments, Bank of Uganda indicated that at the time of issue of the Letter of Credit on 19/06/2007, the Exchange Rate was UGX 2,213.61/= for one Euro and that a total of Shs.4,941,308,786/= was paid to the supplier plus commission of 1% of Shs.49,413,088/= to the clearing bank, giving a total of Shs.4,990,721,874/=.

•Airport indicated that the 80 motorcycles were delivered in eight batches. Customs Officers who cleared motorcycles on arrival for assessment of taxes, indicated the following anomalies:

•The motorcycles were delivered fully assembled and ready to ride. The contract stated that they were to be assembled in Uganda

•They were brought with airway bills only and without invoices.

•They did not have any label as to the country of origin and year of manufacture except that the issuing carrier's agent was based in Denmark.

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That invoices bearing Motorcare (U) Ltd were brought later after the motorcycles had been handed over to police.

NB: It is important to note that according to customs officials interviewed, this is not the normal way the imports transaction should be presented for clearance. Eachbatchissupposedtohavethreeairwaybills, invoicesfromthe . Manufacturer, packing list, labels as to country of origin, and year of manufacture.

18.1.3According to prices indicated on the invoices, Kjaer Group charged Motorcare Uganda Ltd Euros 21,160 per motorcycle. The invoices also included a fixed charge for Air freight and Transport Insurance of Euros 1,231 for each of the eight batches thus totaling to Euros 9,848 for transportation and insurance.

18.1.4M/S Motor care Uganda Ltd in turn prepared its own invoices to Ministry of

WorksandTransport andcharged eachmotorcycle Euros27,903. This
transaction indicates that M/S Motorcare (U) Ltd made a difference of Euros• 6,743 per motorcycle leading to a total Euros 539,440 for the whole supply of 80motorcycles. (See Appendix 41) .

18.1.5Information obtained from BMW Germany by the Embassy of the Federal Republic of Germany in Uganda indicate that when M/s Motorcare worn the tender to supply the motorcycles in June 2007for CHOGM, an order was reportedly made with BMW Germany to supply the motorcycles.

18.1.6 The order was guaranteed by Kjear Group through an irrevocable letter of credit and integrated into the running production process in August/September 2007. Due to pressure arising from the scheduled CHOGM conference in November 2007, the motorcycles were delivered to Vatry Airport in France from where '^ii-~ Kjear Group supervised the transportation up to Kampala. That BMW Germany confirmed that the motorcycles were sold at market price, (the "market price" was not disclosed}. (See Appendix 42)

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18.1.7 It was established that government's estimation of Euros 21,645 per motorcycle, was within the range at which M/s Kjear Group invoiced (Euros 21,160) Motorcare (U) Ltd. The charge of Euros 27,903 per unit cost put the cost of the contract higher than the funds previously indicated in PP Form 20.

18.1.8it was further established that M/S Motorcare (U) Ltd and Kjaer Group acted as middlemen between Uganda Government and BMW Germany. The contract to supply motorcycles did not provide for such intermediaries. The overcharge was therefore borne by Uganda government.

19.0 The Inspectorate of Government requested the Permanent Secretary in the MOWT to cause an inspection to be carried out to assess the existence and the conditions in which the 80 BMW Outrider Motorcycles were in.

19.1. l Accordingly, an inspection was carried out by the Chief mechanical Engineer -of the MOWT. In his report to the Inspectorate of Government dated26th, April, 2011, the Chief Mechanical Engineer stated as follows; "Out of the 8OBMW Motorcycles, only 78 were available for inspection. The other 2 were reported in the field. Of the SO MOTORCYCLES 48 were found in sound functional condition. 32 were non functional requiring various levels of repair intervention”

20.0M/S MOTORCARE fin LTD

20.1.1 Investigations have established that originally Motorcare (U) Ltd was called M/S NISSAN UGANDA LTD a company incorporated on 22nd June 1994 with shareholders as Kjear & Kjear (80 Shares) and Emmanuel Katto (2O Shares).

20.1.2 On 15th December 1995, the name was changed from M/S NISSAN Uganda LIMITED to M/S NIS (U) LIMITED and on 12th February 2001, the name changed to MOTORCARE UGANDA LIMITED with M/S Kjear Group as the soleshareholder. The directors were Pier Lindgren and Flemming Eltang both Danish and Christos Kyriakidis a Greek.

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20.1.3 On the 13th of Octorber 2010 the Inspectorate of Government wrote to the General Manager of Motorcare (U) Ltd Mr. Lars Bjere and requested him to provide the investigation team with production data and documents related to the supply of the 80 Motorcycles including a purchase order form placed by Motorcare to the manufactuere, Telegraphic transfer payment documents and acknowledgment receipts from the manufacturer.

20.1.5 On 26/10/2010 the Investigation team issued a notice requiring Mr. Bjere to comply with the earlier request pursuant to Section 41 1) e) of the Anti Corruption Act 2009. However to date Motorcare has not complied.

NB: It must be noted that at the time the documents specified above were crucial in verifying the origin and type and costs of the Motorcycles that the Uganda Government had procured.

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20.0OBSERVATIONS

Whether the 80 BMW R1200RT Police Outrider Motorcycles were irregularly procured without due regard to the public procurement procedures and regulations.

20.1.1A cardinal principle under the procurement laws in Uganda is that all procurements are carried out to maximize competition and achieve value for money. Section 46 of the PPDA Act provides thus " Subject to this Act, all procurements shall be conducted in a manner to maximize competition and achieve value for money"

20.1.2Public Procurement Processes are defined under the PPDA Act and Regulations 2003 and the roles are clearly spelt out therein. In the CHOGM procurement there was no clarity on the roles of the various players in the procurement of the Motorcycles, that is the Transport Sub Committee, the National Task force, Cabinet Sub Committee and individual Ministers. As a result of this, the procurement process for the BMW Outrider motorcycles was marred with '-'••' instances of contravention of the Public Procurement laws.

20.1.3 The role played by the Hon Minister of Foreign Affairs in soliciting for proposals was beyond his responsibility as a Minister. Though preparations for CHOGM fell under his Ministry, as a Minister, he had no role in identifying service providers, let alone, writing to the companies inviting them to express their interests in supplying the vehicles and opening the proposals. He took over the roles of the Accounting Officer and the Contracts Committee.

20.1.4Evidence on record shows that, The Minister of Foreign Affairs, Hon Sam Kuteesa who was a member of the Cabinet Sub-Committee wrote inviting Motor care (u) Ltd (the eventual winner) to bid in the tender to supply vehicles for the CHOGM conference. He then presented Motor care's proposal to the Ministry of Works and transport to be included in the tendering process.

2O.1.5Hon Kuteesa had in an earlier letter to the IGG denied writing to the service providers .In a recent communication to the AG.IGG he accepted that he had written but asserted that he was simply communicating a change of policy to those companies to find out if they were willing to participate in the process. The

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20.0OBSERVATIONS

Whether the 80 BMW R1200RT Police Outrider Motorcycles were irregularly procured without due regard to the public procurement procedures and regulations.

20.1.1 A cardinal principle under the procurement laws in Uganda is that all procurements are carried out to maximize competition and achieve value for money. Section 46 of the PPDA Act provides thus “Subject to this Act, all procurements shall be conducted in a manner to maximize competition and achieve value for money"

20.1.2 Public Procurement Processes are defined under the PPDA Act and Regulations 2003 and the roles are clearly spelt out therein. In the CHOGM procurement there was no clarity on the roles of the various players in the procurement of the Motorcycles, that is the Transport Sub Committee, the National Task force, Cabinet Sub Committee and individual Ministers. As a result of this, the procurement process for the BMW Outrider motorcycles was marred with instances of contravention of the Public Procurement laws.

20.1.3 The role played by the Hon Minister of Foreign Affairs in soliciting for proposals was beyond his responsibility as a Minister. Though preparations for CHOGM fell under his Ministry, as a Minister, he had no role in identifying service providers, let alone, writing to the companies inviting them to express their interests in supplying the vehicles and opening the proposals. He took over the roles of the Accounting Officer and the Contracts Committee.

20.1.4Evidence on record shows that, The Minister of Foreign Affairs, Hon Sam Kuteesa who was a member of the Cabinet Sub-Committee wrote inviting Motor care (u) Ltd (the eventual winner) to bid in the tender to supply vehicles for the CHOGM conference. He then presented Motor care's proposal to the Ministry of Works and transport to be included in the tendering process.

20.1.5 Hon Kuteesa had in an earlier letter to the IGG denied writing to the service providers .In a recent communication to the AG.IGG he accepted that he had written but asserted that he was simply communicating a change of policy tothose companies to find out if they were willing to participate in the process. The inconsistencies in Hon Kuteesa's statements casts doubt on his credibility in the entire matter.

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20.1.6 Regulation F-B 3 c) of Chapter 1 of the Uganda Government Standing Orders provides that "a Permanent Secretary is the supervisor under a Minister of a Ministry and among other things his or her functions include the implementation of Government Policy

20.1.7 In directly soliciting for bids with the companies, the Hon. Minister not only acted as if he was a Permanent Secretary but he also communicated to the service providers as if he was the PDU of MWT.

20.1.8 The Chairman of the Cabinet Sub-Committee on CHOGM H.E The Vice President, Prof. Gilbert Bukenya affirmed that the decision to procure from Motorcare (U) Ltd was final and that no other bidder should be allowed to submit a proposal.

20.1.9 Prof Gilbert Bukenya assumed the role of the Contracts Committee of the Ministry of Works when he confirmed that the award of the tender to Motorcare (U) Ltd would be final.

20.1.10The PPDA Act provides guidance on the definition of a procuring and disposing unit. Section 3 of the PPDA Act provides that a procurement and disposal unit is "a division in each procuring and disposing entity responsible for the execution of the procuring and disposal function"

The duty to execute and manage the procurement process was therefore a preserve of the PDU, of Ministry of Works and Transport and not the Cabinet Sub - Committee.

20.1.11The actions of the two senior government officials not only contravened the PPDA Act but also led the Government of Uganda to deal with a company which at the time did not have any dealership with BMW Germany.

20.1.12 At the time BMW dealers were shortlisted, Motorcare (U) Ltd did not have a dealership agreement with BMW. The fact that it was included as a BMW dealer on the short list raises fundamental questions about the transparency of this procurement. The dealer contract that Motorcare furnished the Inspectorate is not an authentic document as it was not signed by any party. Secondly the dealer contract is between Motorcare and AES Ltd not BMW.

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20.1.13Further more, Motor care (U) ltd should have been rejected at the
preliminary evaluation stage when they failed to present a valid trading license.

20.1.14 The advise given by Mr. Edgar Agaba of PPDA Authority to the Permanent Secretary was in accordance with the functions of the Authority as provided forunder the Act. For avoidance of doubt Section 7(a) of the PPDA Act 2003 provides as follows;

" The functions of the Authority are to advise Central Government, Local Government and statutory bodies on all public procurement and disposal policies, principles and practices"

21.0 It was therefore also erroneous for the Evaluation Committee to seek the guidance of the Solicitor General on this matter instead of the PPDA Authority. All these actions appear to have been done to push Motor care's bid through at all costs.

22.0Whether there was loss of government funds.

22.1.1 The contract agreement signed between the Government of Uganda and Motorcare (U) Ltd provided that the motor cycles would be inspected at the production stage by the procuring entity before shipment. The Ministry officials who went to Germany to inspect the production of the motor cycles did not see the units as they had already been shipped. Motorcare (U) Ltd further omitted to provide the inspection team with production data which was also a condition in the contract.

22.1.2 There was therefore no value for money in the inspection visit to Germany. The fact that the Motorcycles to be inspected had left the production line and would not be verified was known by Motocare (U) Ltd before the travel to Munich. They should have disclosed the same to the MOWT as good practice so that the Procurement entity could make an informed decision whether to go or not. As a result of the futile trip the Government of Uganda suffered a financial loss of Shs. 14,607,000=

22.1.3 Further more the fact that the Government of Uganda dealt with Motor care (U) Ltd meant that the Government incurred additional costs as a result of the

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21.1.2 For avoidance of doubt Section 41 1) e) provides that "//? the course of an investigation or proceedings into or relating to an offence by any person employed by any public body under this Act, the Director of Public Prosecutions or the Inspector General of Government may not withstanding anything in any other written law to the contrary by written notice require the Minister responsible for any department^ office or establishment of the Government or the President, Chairperson, manager or Chief executive officer of any public body or the secretary, manager or principal officer of any company or association or body of persons whether incorporated or not, or a partner in any partnership to produce or furnish , as specified in the notice, any document or certified copy of any document which is in his or her possession or his or her control"

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22.0CONCLUSION

22.1.1 The Government of Uganda did not get value for money in the procurement of motorcycles. The entire procurement process was a sham and Motorcare (U) Ltd was guided throughout the entire process to become the eventual winner of the tender.

22.1.2 Motorcare (U) Ltd breached the terms of the contract and caused the Government of Uganda to incur a financial loss sh 14,607,000 in the costs of sending an inspection team to Germany well knowing that the vehicles had already been shipped contrary to Section 20 (1) of the Anti Corruption Act 2009.

22.1.3 Motorcare's action of presenting themselves as dealers of BMW caused the Government of Uganda to incur an extra 539,440 Euros in additional costs for the Motorcycle's which could have been avoided if the Government had dealt directly with Kjaer Group Denmark. They performed these actions contrary to Section 20 (1) of the Anti Corruption Act 2009.

22.1.4For avoidance of doubt, Section 20 (1) of the Anti Corruption Act 2009 establishes the offence of causing financial loss. It provides thus "Any person employed by the Government, a bank, a credit institution, an insurance company or public body, who in the performance of his or her duties, does any act or omits to do any act knowing or having reason to believe that such act or omission will cause financial loss to the Government, bank, credit institution, insurance company, public body or customer of a bank or credit institution commits the offence of causing financial loss"

22.1.5The tendering process for the BMW Outrider motorcycles was riddled with influence peddling, and high handedness of officials within the Cabinet Sub Committee who pre-planned and orchestrated the procurement that resulted in Motorcare (U) Ltd as the eventual winner of the bid.

22.1.6The contradictory statements made by the officials of Mashariki point to the fact that there were some underhand events that could have caused the withdrawal of Mashariki from the procurement process to leave only Motorca're as a sole bidder.

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22.1.7The Minister of Foreign Affairs Hon. Sam Kuteesa who was a member of the Cabinet Sub Committee in abuse of his office and authority presented Motor care (U) Ltd to be considered as a bidder in the aforementioned tender. His actions contravened the PPDA Act and were therefore arbitrary and prejudicial to the interests of the Government of Uganda contrary to Section 11 (1) of the Anti Corruption Act.

22.1.8 The Vice President, Prof Gilbert Bukenya in abuse of his office and authority arbitrarily usurped the role of the Contracts Committee of the Ministry of works in affirming Motor care (U) Ltd as a sole bidder. His actions were also prejudicial to the interests of the Government of Uganda contrary to Section 11 (1) of the Anti Corruption Act.

22.1.9 For the avoidance of doubt, Section 11 (1) of the Anti Corruption Act establishes the offence of Abuse of office. It provides that "A person who, being employed in a public body or a company in which the Government has shares, does or directs to be done an arbitrary act prejudicial to the interests of his or her employer or of any other person, in abuse of the authority of his or her office, commits an offence..

22.1.10 Mr. Lars Bjerre of Motorcare (U) Ltd without reasonable excuse refused to comply with the directions given by the IGG to produce documents required by the Inspectorate for evidential purposes. In so doing he contravened Section 35 c) of the Inspectorate of Government Act.

22.1.11Section 35c) of the Inspectorate of Government Act provides that ">l person who without reasonable excuse refuses or fails to comply with any order or direction of the Inspectorate; or commits an offence"

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21.0RECOMMENDATIONS

21.1.1 Prof Gilbert Bukenya and Hon Sam Kuteesa should be prosecuted for Abuse of office in accordance with Section 11 of the Anti Corruption Act 2009.

21.1.3 Mr. Lars Bjere of Motorcare (U) Ltd should be prosecuted for refusal or failure to comply with the directions of the Inspectorate of Government contrary to Section 35 c) of the Inspectorate of Government Act.

21.1.4 Motorcare (U) Ltd should be blacklisted and should not transact with theGovernment of Uganda for a period of 10 years.